Oregon University System

.100  POLICY STATEMENT 

The policy sets forth high-level Payroll roles and responsibilities for the Chancellor's Office and the Institutions.

.110  POLICY RATIONALE

OUS seeks to ensure that the high-level roles and responsibilities of the Chancellor's Office and the Institutions related to Payroll are documented, communicated, and clearly understood and applied.

.120  AUTHORITY

• ORS 351.085 - Duties and Powers of Chancellor

• ORS 351.097 - Payment of Salaries or Compensation; Payroll; Overpayment

• OAR 580-040-0005 - Delegation and Assignment of Responsibility

• IMD 6.001 - Finance and Business Affairs Accounting Policies - Assignment of Responsibility

• IMD 6.002 - Finance and Business Affairs Accounting Policies - Institutional Responsibility

.130  APPROVAL AND EFFECTIVE DATE OF POLICY

Approved by the Budget and Finance Committee of the Board on 2/15/02 as part of the Fiscal Accountability Framework Final Report.  The effective date of the policy is 3/1/02.

.140  KNOWLEDGE OF THIS POLICY

All Chancellor's Office and institutional personnel with payroll and related responsibilities should be knowledgeable of this policy.

.150  DEFINITIONS

None.

.160  HIGH LEVEL ROLES AND RESPONSIBILITIES

1. CHANCELLOR'S OFFICE 
   

   High level roles	High level responsibilities
   System-wide Payroll and Software Management	Responsible for System-wide payroll processes, development of calendar, coordinates aggregate information, approves system table changes and baseline software modifications.
   Benefits Administration (PEBB, Retirement, Tax Deferred Programs)	Processes forms and performs administrative functions related to all retirement, health, and tax-deferred savings programs.  Develops coding and programming related to benefit changes.  Performs centralized scanning and system updates.  Monitors enrollment, eligibility, and annual limits where appropriate.
   Regulatory and Informational Reporting	Prepares and submits IRS and DOR deposits and forms in compliance with reporting requirements.  Submits Employment and Risk Management reports.  Responds to external requests for information.
   Regulatory Compliance	Provides expertise related to regulatory issues: Non-resident Aliens, Social Security, Moving Expenses, and other Fringe Benefits.  Sometimes involves filings and reporting.  (NRA mailing, NRA filings, Form 5500 benefit information, discrimination testing).
   Year-end Processing	Aggregates Direct Deposit information and sends file to State Treasury.  Transfers funds in treasury accounts to cover direct deposits and paychecks.  Performs check reconciliation function.  Maintains outstanding check files.
   Vendor Payments	Processes all payments except those related to institutional deductions and enters the corresponding journal vouchers for fund transfers between the campuses and the Controller's Division.  Processes all garnishment notifications and payments.  Calculates deduction amounts for 5th site.

   See Appendix .710 A for more specific Chancellor's Office payroll operational tasks and responsibilities.

2. INSTITUTION
   

   High level roles	High level responsibilities
   Payroll Processing, Data Verification, and Payroll Certification	Institutions create payments to employees.  Beginning with time collection and data entry, institutions run distributed payroll software.  At key intervals, data is audited.  At the end of the payroll, the results are certified to the CO, pay distributed, and accounting information fed to the finance system.  Performs adjustments, manual checks, and redistributions as needed.
   Benefit and Deduction Management	Manages institutional deductions.  Shares open enrollment responsibilities of form coding, auditing, input with HR offices.  Monitors retirement eligibility.  Provides required forms to employees; performs "first line response" to employee inquiries.
   Taxation/Regulatory Issues	Obtains, inputs, and maintains W-4 forms, EIC forms, and NRA information.  Inputs and monitors changes to Social Security exempt status for students.  Collects and inputs taxable fringe benefit information (tuition reductions, moving expenses, car allowances, domestic partners, cash awards/prizes).
   Payroll Accounting	Reconciles feed of HR data to Finance systems, monitors/corrects encumbrances, reconciles all withholding accounts, reviews OPE expense charges, and makes adjustments when necessary.
   Version and Modification Testing	Tests functionality of new software releases and system modifications.  Entails detailed analysis using test systems and sample populations.

   See Appendix .710 B for more specific Institutional payroll operational tasks and responsibilities.

.690  CONTACT INFORMATION

Direct questions about this policy to the following offices:

.695  HISTORY

10/15/03 - Reformatted

2/15/02 - Approved 

Policy Last Updated: 10/15/03

.710  TASKS AND RESPONSIBILITIES

The following tables identify specific Chancellor's Office and Institution payroll operational tasks and responsibilities.  Primary factors influencing the division of duties are:

• statutory
• the manner in which the software functions
• distributed architectural model implemented

1. CHANCELLOR'S OFFICE
   

   Ref #	Task	Description
   1	Systemwide Payroll	The Controller is responsible for preparation of the OUS payroll. Integral to fulfilling this responsibility is the accomplishment of institutional distributed processes as well as central aggregation processes.
   2	Software Management	The Chancellor's Office will initiate all changes to the "Standards Tables".
   3	External Informational Reporting	The Controller's Division (CD) responds to requests from the public, auditors, DAS, legislators, unions, vendors, and national higher education associations.
   4	Federal Tax Reporting	The CD prepares and submits IRS Forms 941, quarterly reports, W-2s, W-2c, W-3, 941c, 843, and 6559 in compliance with all tax-reporting requirements.
   5	State Tax Reporting	The CD prepares and submits Oregon Department of Revenue Forms OQ and WR.
   6	Employment Division Reporting	The CD submits to the Employment Division a monthly report of employee earnings.
   7	PERS & TIAA-CREF	The CD codes enrollments, annually transfers funds from the PERS trust account to TIAA-CREF, and maintains records of participation.
   8	Optional Retirement Plan	The CD receives and transmits enrollment forms; works with ORP vendors; processes payments; maintains forfeiture accounts; maintains permanent records of employee participation; elections and terminations; as well as coordinates annual performance reviews and audits of the program.
   9	Garnishments	The CD will, for all institutions, respond to notices, notify employees, and submit payments accompanied by required forms. The CD will calculate and enter payroll deductions for 5th site instances. To facilitate flexibility in payroll scheduling, OSU, PSU, UO will calculate and enter their own payroll deductions.
   10	Vendor Payments	The CD will process all payments except those related to the institutional charitable fund drive. CD processed payments will include TDIs, Optional Retirement Program, DVA, PERS, health insurances, Deferred Compensation, DAS, Nationwide, mass transit, OPEU dues, fair share, legal, Workers' Comp, Dependent Care, Unionflex. These payments are accompanied by hard copy or tape reports of the items included.
   11	Inter-institutional Journal Vouchers	The CD initiates inter-institutional journal vouchers for selected deductions.
   12	Cash Management	Each institution will have a separate account at the State Treasury. The CD will perform the required transfers.
   13	Manage Withholding Accounts	Each institution will have a unique payroll account at the State Treasury. The CD will make necessary transfers between accounts at the State Treasurer.
   14	Check Reconciliation	The CD reconciles the payroll checking account and maintains the outstanding check file.
   15	ACH Processing	Institutional Automated Clearinghouse (ACH) files will be sent to the CD, consolidated, and sent to the State Treasury.
   16	Reconciliation of YTD to Payroll	The CD will reconcile YTD W-2 data from the aggregate payroll warehouse to the institutional payroll instances.
   17	Non-Resident Alien Compliance	IRS requirements include annual mailings, determination of substantial presence status and treaty exemptions. The CD will performs these functions and maintains related files.
   18	Corrected W-2s and Associated Filings	The CD performs all corrected W-2s and associated filings. This includes entries to the payroll system to coincide with adjusted W-2 data.
   19	W-2s	The CD submits W-2 files using a single tax-payer ID for OUS. The CD will also assure that an employee who has worked at more than one institution during the calendar year will receive only one W-2.
   20	Duplicate W-2s	The CD will process requests for W-2s which are two, or more, years old; this will be performed manually by the CD.
   21	SSA Verification	The CD, using the aggregate instance, will submit to the Social Security Administration an annual report. The SSA compares it to their files, the CD receives an error listing and works with the institutions resolving differences.

2. INSTITUTIONS
   

   Ref #	Task	Description
   1	Payroll Certification	The Controller's Division (CD) verifies the accuracy of each payroll prior to release of the ACH tape and checks. Significant reliance will be placed on work done by the institutions. As a part of each Banner payroll, institutionally distributed processes will be certified by the institutional Payroll Manager. This certification will include completion of a checklist established by the Controller and will be submitted at the same time the direct deposit file is transmitted to the Controller's Division.
   2	Data Entry	Institutions will establish time lines and cutoffs, as well as perform the physical data entry.
   3	Payroll Processing	Institutions will run the processes to move employees through the various stages.
   4	Audit Exception Reports	The CD will provide a baseline set of audits for checking database entries and payroll results. The institutions will run these scripts to generate audit reports and may add additional audits for institution specific data as they deem necessary.
   5	Payroll Testing	The institutions payroll staff will review reports and data at specific intervals throughout the payroll process. The institutions may also develop GQL reports to audit personnel data.
   6	Finance Posting Reconciliation	The payroll system will generate the institutional feed to the finance system. Payroll and Business Offices will reconcile payroll data to finance data making sure transactions post and balance.
   7	Reconciliation of Withholding Funds	The institutions will have withholding funds for each payroll deduction. All institutional funds will be reconciled at the institutions.
   8	Paycheck & Earnings Statements	The institutions will print the payroll checks. This will include development of necessary security procedures and processes. Earnings statements will also be printed at the institutions.
   9	Payroll Check Stock Inventory	The check stock is ordered, received, issued, inventoried and controlled by the institutions. Check stock specifications are mandated by the State Treasury; OUS requirements are established by the CD.
   10	Bank Numbers on ACH Table	The bank table used for designating banks for both direct deposit and deductions will be initially populated by the CD and then it will be maintained by the institutions. This is a simple process of entering the bank routing number and the bank name and address.
   11	Benefit Management	The CD will maintain and develop "Standards" deductions. Institutions will develop and maintain their own institutional deductions.
   12	Open Enrollment
   13	PERS	The CD will make payments, balance and reconcile the employer contributions with PERS and act as a liaison for all OUS institutions. The institutions will develop GQL reports for eligibility, tracking new employees and running scripts for notices of appointment and separation.
   14	Tax Deferred Investments
   15	Earned Income Credit	The IRS requires annual notifications to employees of the earned income credit. The institutions will perform this notification (earnings statement stuffer, individual letters, etc.).
   16	FICA Changes	The institutions will monitor changes to FICA coding, move employees (including students) into and out of exempt status, process refunds, and set up receivables. This includes performing annual mass changes to change student coding, monitor employee status changes and make appropriate refunds and collections.
   17	Temporary SSNs	The institutions will assign temporary numbers and track temporary numbers.
   18	Duplicate Employees	The OUS has one taxpayer ID number for all tax reporting. This means that OUS must assure accurate taxation and benefit reporting for employees working at more than one institution. The CD will maintain an aggregate SSN/name/birth date database. This will be used by the institutions to monitor employees being paid by more than one campus.
   19	Moving Expenses	The CD and the institutions work together to collect data from the FIS accounts payable system for input into the payroll system to be included on the employee's W-2 (the taxable portion of moving expenses must be reported on the employee's W-2).
   20	Tuition Reduction	The institutions will collect data on employees taking courses at OUS staff rates, process the time cards and contact the employees.
   21	GQL Reporting	The CD will provide reports from the aggregate warehouse where applicable. The institutions will generate some payroll reports from Banner Standard Reports, ad hoc (GQL), and 5th site scripts.

.995  HISTORY

10/15/03 - Reformatted

7/24/98 - Approved 

Appendix Last Updated: 10/15/03